August 16 Chart of the Day - Brookfield
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Brookfield (BN) is a leading global investment firm with approximately $1 trillion of assets under management. According to their website, they invest on behalf of institutions and individuals around the world with the goal of helping them to create long-term, sustainable wealth.
Brookfield is in the headlines today because Bill Ackman's Pershing Square Capital Management firm bought 6.9 million shares of Brookfield last quarter. Ackman is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square. Published reports also disclosed that Pershing bought about 3 million shares of Nike during the quarter.
Today we'll review Brookfield from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $50.50 all time high (ATH) back in early 2022 price fell dramatically all the way down below the $30 area over the next several months.
Since then, price traded sideways for a few months before taking off back to the upside for the past 10 months.
Weekly Chart
On the weekly chart we can see with much more clarity the dramatic fall from ATHs, the sideways movement, and the leap back up with authority. The bulls have been making a series of higher highs and higher lows.
Trading around $46.40 earlier today price seemingly has a decision to make of whether to retest the ATHs or fade back down from these levels.
Could the Pershing investment be the catalyst that pushes price to move definitely one way or the other?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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